So, billions of dollars invested later, Tesco's grand plan to conquer America is now officially over. The company announced that it was getting out of the U.S. having potential buyers lined up to acquire some or all of the 199-store Fresh & Easy chain.
Tesco, as identified on this site and elsewhere over the years, failed to understand and connect with American consumers after opening to much fanfare in the U.S. market in 2007. The venture, begun under the leadership of former Tesco CEO Sir Terry Leahy, banked on a rapid expansion of stores to help it achieve Walmart-like prices for Whole Foods-quality fresh and prepared foods.
"The falling star of Tesco in the U.S. is a harsh reminder that scale is not the recipe for sustainable value creation," Ajay Bhalla, professor of global innovation management at Cass Business School, told BBC News.
Fresh & Easy management offered this statement on the company's website: "While we don't yet know who our new owner will ultimately be, Tesco has already received interest from a number of parties including groups looking to purchase Fresh & Easy as an operating business. We appreciate all the support and love we've received from our loyal customers and, even though our parent company plans to leave the U.S., we're pleased to confirm there are no plans to close any portion of Fresh & Easy."
